Q2 2020 23 July, 2020 April and May significantly impacted by - - PowerPoint PPT Presentation

23 July, 2020

Q2 2020

April and May significantly impacted by Covid-19, strong pick-up in June expected to continue

Gross revenue

(EUR million)

15.6 15.1 15.9 15.8 14.9 18.1 6.6 7.4 7.1 4.2 4.6 6.7 4.4 3.5 3.7 3.0 2.7

Jan Feb Mar

0.9

Apr May

22.5

Jun

26.5 27.4 26.0 26.6 20.9

All markets Spain excl. REO Spain REO

2

3

Aligning costs with market activity

• Temporary workforce reductions of ~400 employees during Q2
• Executive team salary reductions in Q2 extended through Q3
• Temporary price reductions from IT vendors
• Norwegian operation reduced from five to two sites
• Sweden closing one of two sites
• Further consolidation under consideration
• EUR ~13m expected in H2 2020
• EUR 1.2m restructuring costs in Q2 2020
• Legal costs driven by activity in notary offices and bailiffs
• Scalable setup to take advantage of further reopening of the

economies

• Potential new lockdown may significantly impact return to

normality

HQ

Actions to align costs to activity level Site consolidation to increase efficiency Further cost saving initiatives depends on activity level EUR ~25m estimated annual savings for 2020

4

• Net negative revaluation of EUR 27m of NPL

portfolio

• Extensive review of all portfolios in all countries
• Based on estimated short-term financial impact of

Covid-19

• Expected overall collection from 2021 onwards

remain largely unchanged

NPL revaluation in Q2 of -2.4%

Pre revaluation Revaluation 27 Closing book value 1,107 1,134

NPL book value

EUR million

• 2.4%

5

• Estimated impairment of EUR 26m on REO

assets

• Based on updated commercial analysis taking prudent

view of current trends in the market

• Impairment test with external valuation support to be

conducted in the second half 2020 to validate initial assessment

• Lower asset prices observed in the market
• Lower price growth expectations

REO impairment in Q2 of 22.7%

115 89 26 Pre impairment Closing book value Impairment accrual

REO book value

EUR million

• 22.7%

6

Covenant update

Reopening of markets and improving collection significantly reduces risk of covenant breach for the second half 2020 Waiver obtained to exceed the leverage ratio covenant for Q2 and Q3 on the main bank facility In compliance on all loan agreements as of Q2 2020 with waiver

1 2 3

Norway

7

Covid-19 country update

• Significant impact from legal systems being closed first half of the second quarter
• Gradual ramp-up from mid May expected to continue into Q3

Spain Italy Germany Finland Sweden

• Significant impact from legal systems being closed first half of the second quarter
• Lock-down restrictions reduced from June with increasing 3PC flow from customers
• NPL collection has remained strong, 3PC with slightly lower volumes
• Short-term resilience against Covid-19
• Revenue has remained stable, although the field service operation was temporarily suspended
• Limited impact on NPL collection, while disrupted sales processes slows 3PC ramp-up
• Bailiff temporary adjusting collection level to reduce stress on debtors
• No significant impact on collection due to Covid-19 as economy has remained open
• Continued back log at bailiff, expected to be resolved by end of 2020

Ramping up activity levels as markets reopen

HQ

8

• Nordics less impacted than expected
• Gradual ramp-up in Spain and Italy
• Increasing 3PC sales expected in H2 as sales processes

normalize

• Expects shift towards positive cash flow after

investments during H2 due to lower investments and higher Cash EBTIDA

• Total investment level in 2020 in excess of EUR 200

million secures significant volume growth going into 2021

Q2 2020

Financials

Lockdowns and impairments significantly affected Q2 financials

T

• tal revenue development

(EUR million)

EBITDA and EBITDA-margin

(EUR million and %)

Cash EBITDA

(EUR million)

54 49 68 74 72 64 75 56 29 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

Q2 2020 NPL revaluation

56* 11 10 20 22 26 20 24 14

• 30

20% 21% 29% 30% 36% 31% 32% 25%

• 105%

41%**

• 110%
• 60%
• 10%

• 35
• 30
• 25
• 20
• 15
• 10
• 5

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

Q2 2020 NPL revaluation and REO impairment accrual

23** 41 33 45 59 65 60 67 48 44 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

10

*Excluding NPL revaluation in Q2 2020 **Adjusted for NPL revaluation and REO impairment accrual in Q2 2020

149 85 95 90 62 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 ESP NOR DEU SWE ITA FIN

11

NPL – Capex mainly deployed in Nordic forward flow deals

NPL collection on own portfolios

(EUR million)

Quarterly NPL investments

(EUR million)

31 25 40 52 50 54 61 54 54 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

12

• Growth fueled by high investments over the last

years

• Commitments dropping significantly in Q3 2020

and onwards

• Cash EBITDA expected to pick-up in H2 – as long

as countries continue to reopen

• With continued open markets, liquidity remains

satisfactory

• Deleveraging expected over the coming quarters

More balanced cash flow in second half of 2020

69 149 85 95 90 62 35 31 48 52 46 53 34 30 Q4-20 Q1-19 Q2-20 Q2-19 Q3-19 Q4-19 Q3-20 Q1-20 Committed capex NPL capex Cash EBITDA less interest expense

NPL investments and Cash EBITDA development

(EUR million)

13

3PC – temporary suspensions to collection services

• 3PC negatively affected by Covid-19 situation in Q2
• Temporary collection suspension in Italy and Spain
• Temporary suspension of field services in Germany
• Weakened NOK causes negative translation effects for the less

affected Norwegian operations

• Potential for higher demand post-crisis
• The finance sector accounts for approximately three quarters of

the 3PC revenue

• Economic repercussions are expected to increase volume of

non-performing loans at customer’s balance sheets

• Continued focus on combined forward flow and

3PC deals

13 12 15 14 16 12 16 13 10

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

T

• tal revenue 3PC

(EUR million)

REO total revenue development

(EUR million)

22 19 20 25 25 20 21 12 7

6 161 7 388 6 323 5 773 5 130 4 612 4 024 3 740 3 489

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 REO sales

• No. of assets in inventory

14

• Revenue shortfall in the quarter
• REO segment particularly affected as closure of public notary
• ffices postponed completion of REO sales
• Most REO revenue stems from sales signed in the first

quarter with completion and realization in the second quarter

• 256 units sold in Q2, down 17% from Q1
• Average unit price of EUR 26k

REO – Disruption from lockdown in Spain

13 12 26 27 25 22 28 21 4 4 4 5 4 8 4 6 5 2 2 2

• 1

3 2 1 1

• 27
• 1

1 20 18 31 34 35 29 36 25

• 21

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 NPL portfolios 3PC REO portfolios Other

15

T

• tal:
• Negative contribution margin in Q2

NPL:

• Portfolio amortization and revaluation of EUR 42.1m (18.8)

Contribution margin of 33% (80%)

• Includes EUR 27.0 million in net negative revaluation

3PC:

• 20% contribution margin (50%)

REO:

• Reflects EUR 26.0 million impairment accrual
• Slightly negative contribution excl. impairment accrual

Contribution per segment*

(EUR million) - Excluding unallocated overhead cost *Contribution before allocation of local SG&A and IT cost, management fee, central administration costs, other gains and losses or finance costs Segment contribution margin = Segment contribution/Segment net revenue Total segment contribution less unallocated cost = EBITDA

Contribution per segment

16

Net finance, tax and net profits

• Total net financial cost of EUR 14.4m
• Interest cost of EUR 13.9m
• EUR 0.4m net negative interest on deposits in group

multicurrency cash pool

• Average blended interest costs of approx. 5%
• Tax return of EUR 2.5m
• Average tax rate expected to trend towards ~25% over time
• Net loss of EUR 44.4m
• EUR -26.7m to equity shareholders
• EUR -17.7m to non-controlling minorities

Condensed Income statement (EUR thousand)

For the quarter end Year to date EUR thousand 30 Jun 2020 30 Jun 2019 30 Jun 2020 30 Jun 2019 EBIT

• 32 577

23 748

• 21 060

43 622 Financial revenue 201 29 9 934 43 Financial expenses

• 14 558
• 13 961
• 30 213
• 25 878

Net financial items

• 14 357
• 13 932
• 20 279
• 25 835

Profit/(loss) before tax

• 46 934

9 815

• 41 339

17 787 Tax (expense) 2 538

• 3 661

393

• 7 009

Net profit/(loss) after tax

• 44 396

6 154

• 40 946

10 778 Net profit/(loss) to Non-controlling interests

• 17 722

1 549

• 19 438

4 133 Net profit/(loss) to equity holders

• 26 674

4 605

• 21 508

6 645 Earnings per share: basic

• 0,144

0,030

• 0,120

0,043 Earnings per share: diluted

• 0,137

0,026

• 0,114

0,038

Q2 2020

Outlook and Summary

18

Increasing long-term opportunities: + Lower prices and higher IRRs for future NPL portfolio acquisitions, due to increased NPL supply and buyside capital restraints + 3PC volumes expected to increase once normal banking

• perations resume

Medium-term risks: – Resurgence of Covid-19 followed by new strict mitigation measures on national and regional levels – Economic setback, significantly higher unemployment and lower consumer affordability

Outlook

Gross revenue NPL & 3PC

(LTM, EUR million)

57 74 86 100 113 133 147 169 203 224 253 275 276 274

• Q2 2020 significantly impacted by Covid-19 in all

business areas

• Improving markets with strong pickup in June expected

to continue

• Revaluation and impairment of EUR 53 million to

portfolios

• Waiver for leverage ratio covenant which together with

re-openings and improved collections significantly reduces risk of breach in H2 2020

• Cost reductions estimated to EUR 25 million for 2020
• Investment level in excess of EUR 200 million for 2020

secures growth into 2021

Summary

Supporting information

21

Q2 2020 Financial highlights

1 721 2 153

Q2 2019 Q2 2020

72 29

• ,10.0

Q2 2019 Q2 2020

Q2 2020 NPL revaluation

56*

26

• 30

36%

• 105%
• 30
• 20
• 10

Q2 2019 Q2 2020

Q2 2020 NPL revaluation and REO impairment accrual

23**

T

• tal revenue

(EUR million)

EBITDA and margin

(EUR million)

Cash EBITDA

(EUR million)

NPL ERC

(EUR million)

65 44

Q2 2019 Q2 2020

• 60%
• 32%

+25%

*Excluding NPL revaluation in Q2 2020 **Excluding NPL revaluation and REO impairment accrual in Q2 2020

22

H1 2020 Key highlights

1 721 2 153

H1 2019 H1 2020

• EBITDA impacted by write downs and the Covid-19 situation – REO particularly affected
• Pick-up in June expected to continue into Q3 and onwards
• Significant cost reduction initiatives implemented during Q2
• Capex invested in NPL portfolios of EUR 152 million – Expect to invest in excess of EUR 200m for the FY 2020
• Loss before tax of EUR 41.3 million

146 84

H1 2019 H1 2020

48

• 16

33%

• 19%
• 30
• 20
• 10

H1 2019 H1 2020

T

• tal revenue

(EUR million)

EBITDA and margin

(EUR million and %)

Cash EBITDA

(EUR million)

NPL ERC

(EUR million)

124 93

H1 2019 H1 2020

• 42%
• 25%

+25%

Q2 2020

NPL portfolio

149 85 95 90 62 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 ESP NOR DEU SWE ITA FIN

24

Capex mainly deployed in Nordic forward flow deals

NPL collection on own portfolios

(EUR million)

Quarterly NPL investments

(EUR million)

31 25 40 52 50 54 61 54 54 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

25

• Slight increase in collection performance despite
• ngoing Covid-19 measures:
• Measures in place during the full quarter
• Italy and Spain most affected
• Strong pick-up at the end of the quarter
• Collection performance less affected in Germany

and the Nordics

• Back log at the Swedish bailiff due to transition to new IT

system – expect return to normal during H2 2020

• Long term average performance expected to

fluctuate around 100%

• Portfolios with large positive or negative deviations are

continuously on review for revaluation

Actual collection vs. active forecast*

(LTM, rolling)

Collection performance impacted by Covid-19 measures

90% 97% 94% 95% 95% 100% 101% 108% 112% 106% 101% 98% 92% 93% Q1 2017 Q3 2017 Q1 2018 Q3 2018 Q1 2019 Q3 2019 Q1 2020

*Active forecast reflects changes made to the ERC curves on an ongoing basis

Adjustments to portfolio values have been taken over the P&L on an ongoing basis as deviations have occurred

26

• 81% of H1 2020 capex invested in the Nordics
• Shift from Spain towards the Nordic countries
• Attractive IRR development through 2019 and into 2020
• Primarily forward flow agreements for unsecured consumer

finance claims

• Renegotiated existing forward flow agreements to

include 3PC servicing and/or postpone capex

• Expected FY 2020 investment level in excess of EUR

200m – securing volume going into 2021

• Opportunistic approach to one-off portfolios
• No REO acquisitions since 2018

Portfolio capex distribution per country*

Share of total (EUR million)

*Including NPL and REO portfolio investments

Portfolio acquisitions focused on Nordic forward flows

399 2018 561 2019 H1 2020 152 DEU FIN ESP ITA NOR SWE

27

Forward flow outlook

Estimated FF investments from signed contracts

(EUR million)

• Total investment of EUR ~140m in forward flow

contracts during H1 2020

• Estimated H2 forward flow capex of EUR 65-70m
• Reduced commitments drastically, albeit from a

high level

• NPL portfolio investments secure volume going into

2021

26 25 30 25 21 12 14 14 8 11 9 11 Actual FF investments Estimated FF investments

28

1 721 1 877 2 038 2 052 2 153

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 ESP NOR DEU SWE ITA FIN

ERC development

(EUR million)

Forward ERC profile by year

(EUR million)

ERC increase despite negative revaluation in the quarter

263 259 219 196 173 157 143 129 117 107 97 88 80 71 54

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 ESP NOR DEU SWE ITA FIN

Q2 2020

3PC

30

T emporary suspensions to collection services

• 3PC negatively affected by Covid-19 situation in Q2
• Temporary collection suspension in Italy and Spain
• Temporary suspension of field services in Germany
• Weakened NOK causes negative translation effects for the less

affected Norwegian operations

• Potential for higher demand post-crisis
• The finance sector accounts for approximately three quarters of

the 3PC revenue

• Economic repercussions are expected to increase volume of

non-performing loans at customer’s balance sheets

• Continued focus on combined forward flow and

3PC deals

13 12 15 14 16 12 16 13 10

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

T

• tal revenue 3PC

(EUR million)

ESP; 45% NOR; 22% DEU; 23% ITA; 6% FIN; 4% SWE; 1%

31

• Increasing the Nordic 3PC business
• Synergies to be extracted from cross-border deals
• Nordics accounted for 26% in the quarter
• Specialized value chain proposition
• Focus on financial institutions, both in NPL and 3PC
• 3PC offering with high value recurring revenue
• Axactor’s highly modern, flexible and scalable platform

More diversified geographical exposure

3PC total revenue split by geographic region

Q2’20 T

• tal revenue

EUR 9.7m

Q2 2020

REO portfolio

REO total revenue development

(EUR million)

22 19 20 25 25 20 21 12 7

6 161 7 388 6 323 5 773 5 130 4 612 4 024 3 740 3 489

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 REO sales

• No. of assets in inventory

33

• Revenue shortfall in the quarter
• REO segment particularly affected as closure of public notary
• ffices postponed completion of REO sales
• Most REO revenue stems from sales signed in the first

quarter with completion and realization in the second quarter

• 256 units sold in Q2, down 17% from Q1
• Average unit price of EUR 26k

Disruption from lockdown in Spain

• Total portfolio investments of EUR 285m*
• Last portfolio acquisition in Q3 2018
• 61% decline in book value since peak
• Limited tail risk
• Axactor owns ~40% of the REO book
• A total of 8,608 assets acquired*
• 5,119 assets sold

*Adjusted for assets pending legal transfer

REO portfolio moving towards the tail

8 8 157 198 187 223 200 181 162 148 129 120 89 Q4 2017 Q1 2019 Q2 2017 Q3 2017 Q3 2018 Q1 2018 Q4 2018 Q2 2018 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 528 521 4,825 Q4 2018 Q1 2018 Q3 2017 Q2 2017 Q3 2018 Q4 2017 Q2 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 6,703 6,161 3,489 7,388 6,323 5,773 5,130 4,612 4,024 3,740

REO # of units* REO book value*

EURm

34

Current book Asset class # assets % of total Book value % of total Housing 1,416 41 % 51.0 58 % Parking, annex etc. 1,326 38 % 4.1 5 % Land 262 8 % 5.3 6 % Commercial 485 14 % 30.0 34 % Elimination 0 %

• 1.8
• 2 %

Total 3,489 100 % 88.6 100 %

35

• Housing represent more than 55% of current book

value

• Limited exposure to commercial assets
• Average book value per remaining asset EUR 25k
• Average book value per sold asset of EUR 32k
• Average sale price per sold asset of EUR 40k

*Adjusted for assets pending legal transfer

REO statistics*

EURm

Originally acquired Asset class # assets % of total Book value % of total Housing 4,020 47 % 194.2 68 % Parking, annex etc. 3,394 39 % 15.8 6 % Land 324 4 % 8.9 3 % Commercial 870 10 % 66.4 23 % Total 8,608 100 % 285.3 100 %

Q2 2020

Financials

13 12 26 27 25 22 28 21 4 4 4 5 4 8 4 6 5 2 2 2

• 1

3 2 1 1

• 27
• 1

1 20 18 31 34 35 29 36 25

• 21

Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 NPL portfolios 3PC REO portfolios Other

37

T

• tal:
• Negative contribution margin in Q2

NPL:

• Portfolio amortization and revaluation of EUR 42.1m (18.8)

Contribution margin of 33% (80%)

• Includes EUR 27.0 million in net negative revaluation

3PC:

• 20% contribution margin (50%)

REO:

• Reflects EUR 26.0 million impairment accrual
• Slightly negative contribution excl. impairment accrual

Contribution per segment*

(EUR million) - Excluding unallocated overhead cost *Contribution before allocation of local SG&A and IT cost, management fee, central administration costs, other gains and losses or finance costs Segment contribution margin = Segment contribution/Segment net revenue Total segment contribution less unallocated cost = EBITDA

Contribution per segment

38

• Axactor has approximately 40% of the total

exposure for REO

• Minority shareholders in both Reolux and its subsidiaries
• Axactor’s share of REO amounts to approximately 4% of

its total portfolio book value

• Axactor shareholders has approximately 83%
• f the total exposure for NPL
• Minority shareholder in Axactor Invest

T

• tal book value exposure

(EUR million)

Minority shareholders in both NPL and REOs

1 107 916 89 37 1 196 953 Consolidated Axactor exposure NPL REO 3.9% 7.4%

39

*Net profit to equity holders divided by Equity excluding non-controlling interests

Axactor targets improved ROE over time

• Portfolios acquired at

attractive IRRs in the Nordic market

• EBITDA margin significantly

affected by write downs in the quarter

• Significant increase in

combined 3PC and NPL deals

• Current level of ~5%
• Efficient tax rate not

relevant for Q2 2020

• Improved IRR levels to be

blended in over time

• Volume growth through

2020 and into 2021, with strong cost discipline

• Leveraging on 3PC and

NPL synergies

• Refinancing and continiued

improvement of capital structure

• Expected to a ~25% over

time

Drivers Q2 2020 Outlook

• NPL portfolio prices
• Economies of scale
• Business mix
• Funding cost
• Tax rate

Return on Equity*

(Periodic, %)

• 9.2%

1.7% Q2 2019 Q2 2020

31.12.2019 30.12.2020 30.12.2021 30.12.2022 140 37 425 75 120 200 50 Axactor Invest 1, senior debt Revolving Credit Facility Bond Axactor Invest 1, mezzanine Reolux/Nomura REO financing

40

Axactor funding structure

• Expects to start deleveraging going into 2021
• Equity ratio of 27% from equity book value of EUR 363

million

• Funding base increased by EUR 51 million in Q1 2020

from private placement

• Extended EUR 425* million RCF by one year to

December 2021, conditional on refinancing of bond by end Q1 2021

• Cash balance of EUR 34 million
• Expected remaining capex requirements in FF agreements in

the range of EUR 65-70 million for 2020

• Expect shift towards positive CF after investments during H2

EUR million Option

41

Net finance, tax and net profits

• Total net financial cost of EUR 14.4m
• Interest cost of EUR 13.9m
• EUR 0.4m net negative interest on deposits in group

multicurrency cash pool

• Average blended interest costs of approx. 5%
• Tax return of EUR 2.5m
• Net loss of EUR 44.4m
• EUR -26.7m to equity shareholders
• EUR -17.7m to non-controlling minorities

Condensed Income statement (EUR thousand)

For the quarter end Year to date EUR thousand 30 Jun 2020 30 Jun 2019 30 Jun 2020 30 Jun 2019 EBIT

• 32 577

23 748

• 21 060

43 622 Financial revenue 201 29 9 934 43 Financial expenses

• 14 558
• 13 961
• 30 213
• 25 878

Net financial items

• 14 357
• 13 932
• 20 279
• 25 835

Profit/(loss) before tax

• 46 934

9 815

• 41 339

17 787 Tax (expense) 2 538

• 3 661

393

• 7 009

Net profit/(loss) after tax

• 44 396

6 154

• 40 946

10 778 Net profit/(loss) to Non-controlling interests

• 17 722

1 549

• 19 438

4 133 Net profit/(loss) to equity holders

• 26 674

4 605

• 21 508

6 645 Earnings per share: basic

• 0,144

0,030

• 0,120

0,043 Earnings per share: diluted

• 0,137

0,026

• 0,114

0,038

For the quarter end Year to date EUR thousand 30 Jun 2020 30 Jun 2019 30 Jun 2020 30 Jun 2019 Interest income from purchased loan portfolios 40,511 32,475 79,838 61,464 Net gain/loss purchased loan portfolios

• 28,147
• 1,188
• 36,906

5,182 Other operating revenue 16,219 41,088 41,222 79,347 Other revenue 71 44 99 74 Total Revenue 28,654 72,418 84,253 146,067 Cost of REO's sold, incl impairment

• 32,033
• 20,205
• 42,207
• 39,720

Personnel expenses

• 12,923
• 13,925
• 27,824
• 29,461

Operating expenses

• 13,663
• 12,143
• 30,058
• 28,602

Total operating expense

• 58,619
• 46,273
• 100,089
• 97,782

EBITDA

• 29,965

26,145

• 15,836

48,285 Amortization and depreciation

• 2,612
• 2,397
• 5,224
• 4,663

EBIT

• 32,577

23,748

• 21,060

43,622 Financial revenue 201 29 9,934 43 Financial expenses

• 14,558
• 13,961
• 30,213
• 25,878

Net financial items

• 14,357
• 13,932
• 20,279
• 25,835

Profit/(loss) before tax

• 46,934

9,815

• 41,339

17,787 Tax (expense) 2,538

• 3,661

393

• 7,009

Net profit/(loss) after tax

• 44,396

6,154

• 40,946

10,778 Net profit/(loss) to Non-controlling interests

• 17,722

1,549

• 19,438

4,133 Net profit/(loss) to equity holders

• 26,674

4,605

• 21,508

6,645 Earnings per share: basic

• 0.144

0.030

• 0.120

0.043 Earnings per share: diluted

• 0.137

0.026

• 0.114

0.038 42

P&L statement

43

Balance sheet statement

EUR thousand 30 Jun 2020 30 Jun 2019 Full year 2019 ASSETS Intangible non-current assets Intangible Assets 21 184 19 678 21 486 Goodwill 54 087 56 288 56 170 Deferred tax assets 11 776 6 117 9 742 Tangible non-current assets Property, plant and equipment 2 787 3 157 2 903 Right-of-use assets 5 765 6 562 5 846 Financial non-current assets Purchased debt portfolios 1 107 257 909 702 1 041 919 Other non-current receivables 530 289 765 Other non-current investments 193 764 193 Total non-current assets 1 203 579 1 002 557 1 139 025 Current assets Stock of Secured Assets 88 625 162 471 129 040 Accounts Receivable 6 468 8 538 13 135 Other current assets 11 797 12 256 14 960 Restricted cash 2 891 2 830 3 739 Cash and Cash Equivalents 31 398 66 505 71 657 Total current assets 141 179 252 600 232 531 TOTAL ASSETS 1 344 758 1 255 157 1 371 556 EUR thousand EQUITY AND LIABILITIES Equity attributable to equity holders of the parent 6 Share Capital 97 040 81 338 81 338 Other paid-in equity 236 454 201 141 201 879 2 Retained Earnings

• 19 354
• 7 527

2 153 Reserves

• 24 684
• 2 255
• 4 721

Non-controlling interests 73 595 103 217 96 977 3 Total Equity 363 052 375 914 377 626 6 Non-current Liabilities Interest bearing debt 802 240 552 788 466 378 9 Deferred tax liabilities 15 409 10 705 17 591 765 Lease liabilities 3 395 4 108 3 481 193 Other non-current liabilities 1 334 1 504 1 415 5 Total non-current liabilities 822 378 569 104 488 864 Current Liabilities Accounts Payable 3 584 3 163 5 902 5 Current portion of interest bearing debt 116 225 278 958 463 555 Taxes Payable 9 535 6 805 6 570 9 Lease liabilities 2 613 2 489 2 549 7 Other current liabilities 27 371 18 723 26 491 1 Total current liabilities 159 328 310 139 505 066 6 Total Liabilities 981 706 879 243 993 930 6 TOTAL EQUITY AND LIABILITIES 1 344 758 1 255 157 1 371 556

Q2 2020

Governance

45

New Executive T eam in place

Johnny Tsolis (CEO)

Arnt André Dullum (COO) Vibeke Ly (Chief of Staff) Teemu Alaviitala (CFO) [Start 1st of August] Robin Knowles (Chief Investment Officer) Kyrre Svae (Chief of Strategy & IR) [Start 1st of August]

Axactor SE (Norway) Axactor Platform Holding AB (Sweden) Axactor Finland Holding Oy (Finland) Axactor Finland Oy Axactor Finland SW Oy (to be discontinued) SPT Latvija SIA (Latvia) SPT Inkasso OÜ (Estonia) UAB Isieskojimu kontora (Lithuania) (to be discontinued) Axactor Norway Holding AS (Norway) Axactor Norway AS Axactor Germany Holding GmbH (Germany) Axactor Germany GmbH Heidelberger Forderungskauf GmbH Heidelberger Forderungskauf II GmbH Axactor España, S.L.U. (Spain) Axactor España Platform S.A. Axactor Sweden Holding AB (Sweden) Axactor Sweden AB Axactor Portfolio Holding AB (Sweden) Axactor Capital Luxembourg S.à r.l. Axactor Capital Italy S.r.l Axactor Capital AS Reolux Holding S.à r.l. Beta Properties Investments S.L.U Borneo Commercial Investments S.L.U. Alcala Lands Investments S.L.U. PropCo Malagueta S.L. Proyecto Lima S.L. Axactor Italy Holding S.r.l. (Italy) Axactor Italy S.p.A. Axactor Incentive AB (Sweden) (to be discontinued) Axactor Invest 1 S.à r.l.* (Luxembourg)

75% 75%

Legal organization July 2020

50% 50% *50% of the shares in Axactor Invest 1 S.à r.l. and Reolux Holding S.à r.l. is held by Geveran Trading Co. Limited (Cyprus). *Geveran Trading Co. Limited also holds shares of Axactor SE

46

Appendix

48

T erms and abbreviations

axactor.com